Sky Labs Gummies, Vape Products Worth $5 Million Placed on Hold in Michigan

Cannabis retailers in Michigan found out on a whim last week that certain gummies and vape products in their inventory were put on a do-not-sell list by state regulators.

The products in question are from processor Sky Labs, a Mount Morris-based company that specializes in making edibles, MLive.com reported.

Certain gummies and vaping products sold under a brand often produced by Sky Labs were placed on administrative hold April 14 by the Cannabis Regulatory Agency (CRA), formerly the Marijuana Regulatory Agency, rebranded last week under an executive order.

A CRA spokesperson told MLive the agency could not comment on or confirm the investigation—no products were place on recall—but licensed retailers continued to receive updates to the do-not-sell list throughout the day on April 15, including blue-raspberry gummies and other flavors of THC-infused edibles from Sky Labs.

Denise Pollicella, a founder and managing partner of Cannabis Attorneys of Michigan, who represents Sky Labs, told MLive the administrative hold was placed on more than $5 million worth of the company’s products with no explanation from state regulators.

“At 4 p.m. [April 14] they received a call from a client and literally all of their product started going on administrative hold,” she said. The CRA “said it’s related to an investigation. It does not appear to be a public health or safety matter, but I’m speculating, because they didn’t issue a recall.”

Pollicella also told the news outlet that the products placed on hold all appear to originate from the same licensed cannabis grower. Pollicella said she could not reveal the grow facility’s name.

Those products already passed state testing standards or else they would not have been approved for distribution to licensed retailers.

When CRA officials place a product on hold, point-of-sale systems don’t automatically flag sales on those products, MLive reported. Instead, retailers are responsible for regularly monitoring a statewide system to determine that products in their inventory remain safe and clear for sale.

Sky Labs previously had a batch of products placed on hold for 13 months, “and we still don’t know why,” Pollicella told the news outlet.